Commercial eyes Bulgarian, Serbian banks
Commercial Bank is close to buying a small Serbian bank and is eying Bulgaria’s fourth-largest bank, Biochim, as it attempts to gain a stronger presence in the region. «We’re at a delicate stage of talks with the management of the Serbian bank and making progress,» a senior Commercial Bank official told Reuters. He said it was a medium-sized bank by Serbian standards, was not state-owned and had 100 branches. «I hope we will soon come to an agreement on the acquisition, though this does not mean it will cancel out our ambitions for Bulgaria’s Biochim,» the official said. Like other Greek banks, Commercial, the country’s fourth largest with a market value of 2.07 billion euros ($1.82 billion), is seeking increased revenues from abroad to offset slowing growth at home. Commercial would join three others in vying for Biochim, a key privatization attempt for Bulgaria, one of the poorest candidates for European Union membership. Bulgaria – which yesterday set back the deadline for bids by a month to May 15 – is selling 99.3 percent of Biochim at a minimum price of $42.7 million. Commercial Bank is to begin due diligence on the bank on April 22. «If our adviser…says the Bulgarian government really has reformed the bank, then we will bid for it,» the official said. «But if there’s been no serious work in that direction, we will not proceed.» Standard & Poor’s rating agency said on Thursday it had revised its outlook on Commercial to positive from stable, as a result of the bank’s improving financial profit and growing market share. It said it expected Commercial to benefit from increased business flows due to its strategic alliance with Credit Agricole, which has an 8.8-percent stake in the Greek bank and an option to increase ownership to 20.5 percent. Commercial Bank’s shares have lost about 35 percent since the beginning of the year, driven down by concerns that ailing markets will take a large bite out of bank profits. Bank profits have declined as Greece’s financial markets have fallen, cutting into fees for brokerage, fund management, underwriting and consultations on stocks and bond offerings. Commercial’s shares have also suffered since Finance Minister Nikos Christodoulakis said the state will further reduce its stake.
